The
U.S. dollar traded higher versus major currencies on Thursday, as worries about
the economic impact of the Covid-19 restrictions boosted safety demand on the
green currency, ahead of the awaited U.S. jobless claims figures.
The
dollar index, which tracks the green currency’s movements against a basket of
six major currencies, rose for a second straight session to 99.98 after hitting
a session top at 100.06.
Meanwhile,
investors are assessing the economic effect of the coronavirus outbreak on the
global economy after the release of horrendous economic data and earnings
reports.
Corporate
financial results showed that investment portfolios managed by large banks took
a hit by the virus spread, while some financial institutions set aside billions
for loan losses.
Bank
of America's first-quarter earnings dipped 45 percent, prompting the bank to
reserve $4.8 billion for credit losses.
U.S.
retail sales released on Wednesday signaled an 8.7 percent drop in March, the
steepest decline since compiling data for the first time in 1992.
Later
in the day, eyes will focus on the U.S. weekly jobless claims, which may show
that 5.1 million people filled for first time jobless applications, raising the
number of terminations above 20 million over last month.
The
U.S. jobless rate is heading towards 20 percent, the worst since the Great
Depression, according to Bloomberg forecasts.
Last
night, the S&P 500 index finished 2.2% down, the Dow Jones fell 1.86
percent and the Nasdaq Composite tumbled 1.44 percent despite President Trump’s
announcement that new Covid-19 cases had “passed the peak,” referring that he
would outline guidelines to relax stay-at-home rules.
The U.S. 2-year
Treasury yield slipped to the lowest level since 2011, reflecting refuge demand
and the risk-off sentiment among investors.